Silver Range Resources Ltd (TSX-V:SNG, OTC:SLRRF) has optioned its Legal Tender silver-gold property in Nevada to Rush Gold Corp.
The Legal Tender property, located 62 km northwest of Tonopah in the Royston Hills, covers most of the historic Republic Mining District, an early 20th-century silver-gold camp.
The site includes the Farris, Hyland and Black Butte Mines, as well as numerous other historic exploration workings.
Mineralization occurs in moderate to steeply dipping vein faults, veins and breccia bodies, along a 1,200-metre-long west-trending Main Trend and an intersecting 400-metre-long northeast trend.
Previous grab samples collected by Silver Range returned up to 1,875 grams per ton silver and 4.94 grams per ton gold.
The property lies about three kilometres north of Rush Gold’s Skylight project and appears to share a similar style of mineralization, according to Silver Range.
Under the agreement, Rush Gold can earn a 100% interest in Legal Tender by making escalating payments totaling US$200,000 and completing 1,000 metres of drilling over four years.
Silver Range will retain a 2.5% net smelter return (NSR) royalty, which can be reduced to 1% for US$500,000 per 0.5%, and will receive US$4 per ounce of gold-equivalent on all measured and indicated resources defined on the property.